Down Payment Requirements

In Canada, federal mortgage insurance rules administered by CMHC require a minimum down payment of 5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $999,999, and 20% on any portion $1,000,000 and above (as of 2026-07-27 — verify current). Properties priced at $1,000,000 or more require a minimum 20% down payment (as of 2026-07-27 — verify current). These are federal requirements; verify current thresholds with a mortgage lender or licensed mortgage professional, as rules may change.

Yes. Under federal mortgage insurance rules administered by CMHC, Sagen (formerly Genworth), and Canada Guaranty, any mortgage with a down payment of less than 20% (as of 2026-07-27 — verify current) must be insured against borrower default. The insurance premium is typically added to the mortgage principal and paid by the borrower over the life of the loan. Verify eligibility, premium rates, and current requirements with a licensed mortgage professional before finalizing your purchase.

Yes, most federally regulated lenders in Canada accept gifted funds for a down payment, provided the donor signs a gift letter confirming the funds are a true gift with no expectation of repayment (as of 2026-07-27 — verify current). Lenders will require documentation of the source of the gift to comply with anti-money-laundering requirements. Verify specific lender policies and required documentation with your mortgage broker or licensed mortgage professional before relying on gifted funds.

British Columbia offers the BC Home Owner Mortgage and Equity Partnership (BC HOME Partnership), which provides eligible first-time buyers with a second mortgage loan of up to 5% of the purchase price (as of 2026-07-27 — verify current) on new homes priced under specific thresholds; the program details and eligibility rules are set out by BC Housing and the BC Ministry of Finance. Additionally, the federal Home Buyers' Plan allows first-time buyers to withdraw up to $35,000 (as of 2026-07-27 — verify current) from an RRSP tax-free for a down payment, subject to federal tax rules. Verify current program availability, thresholds, and eligibility with BC Housing, a BC lawyer, notary, or licensed tax professional before acting.

The Property Transfer Tax (PTT) under the Property Transfer Tax Act, RSBC 1996, c. 378, is separate from the down payment and must be paid on registration of title; it is generally 1% on the first $200,000, 2% on the portion between $200,000 and $3,000,000, and 3% above $3,000,000 (as of 2026-07-27 — verify current), plus an additional 20% on the residential portion if the buyer is a foreign national or taxable trustee (as of 2026-07-27 — verify current). First-time home buyers may qualify for a full or partial exemption under the First-Time Home Buyer Exemption (up to $835,000 fair market value as of 2026-07-27 — verify current) or the Newly Built Home Exemption. Buyers must budget for PTT in addition to the down payment and closing costs; verify current rates and exemptions with a BC lawyer, notary, or the BC Ministry of Finance before finalizing your purchase.

Federally regulated lenders in Canada require documented proof of the source of all down payment funds to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, SC 2000, c. 17 (federal). This typically includes bank statements, proof of sale of assets, employment income verification, or a signed gift letter if funds are gifted (as of 2026-07-27 — verify current). Verify specific documentation requirements with your lender or licensed mortgage professional, as requirements vary by institution.

Yes. The federal Home Buyers' Plan (HBP) allows eligible first-time home buyers to withdraw up to $35,000 (as of 2026-07-27 — verify current) from an RRSP tax-free to use toward a down payment, subject to repayment over 15 years under federal tax rules administered by the Canada Revenue Agency. The withdrawal counts toward your minimum down payment requirement and can be combined with other funds. Verify current HBP eligibility, withdrawal limits, and repayment obligations with the Canada Revenue Agency or a licensed tax professional before acting.

Under federal mortgage insurance rules, properties priced at $1,000,000 or more require a minimum down payment of 20% of the purchase price (as of 2026-07-27 — verify current); for a $1,500,000 home, that is $300,000 (as of 2026-07-27 — verify current). Mortgage default insurance is not available on properties priced at $1,000,000 or above (as of 2026-07-27 — verify current), so the buyer must qualify for an uninsured (conventional) mortgage. Verify current thresholds and lender requirements with a licensed mortgage professional before finalizing your purchase.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, SC 2022, c. 10 (federal), currently prohibits most non-Canadians and foreign commercial enterprises from purchasing residential property in Canada until January 1, 2027 (as of 2026-07-27 — verify current), subject to exemptions. The ban does not change the minimum down payment percentages, but affected foreign buyers may face the additional 20% Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378 (as of 2026-07-27 — verify current), which increases total cash required at closing. Verify your eligibility to purchase, applicable exemptions, and current tax rates with a BC lawyer, notary, or licensed tax professional before acting.

No, the federal minimum down payment percentages are the same for all residential property types, including strata properties (condos) governed by the Strata Property Act, SBC 1998, c. 43, detached houses, and townhomes (as of 2026-07-27 — verify current). However, lenders may have additional requirements for strata properties, such as reviewing the strata corporation's financial health, depreciation reports, and bylaws, which can affect mortgage approval but not the statutory minimum down payment. Verify lender-specific requirements and strata documentation with a licensed mortgage professional and your BC lawyer or notary before finalizing your purchase.